Card Factory (LSE:CARD) ROC % : 13.31% (As of Jan. 2024)

View and export this data going back to 2014. Start your Free Trial

What is Card Factory ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Card Factory's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was 13.31%.

As of today (2024-05-24), Card Factory's WACC % is 18.72%. Card Factory's ROC % is 10.65% (calculated using TTM income statement data). Card Factory earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Card Factory ROC % Historical Data

The historical data trend for Card Factory's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Card Factory ROC % Chart

Card Factory Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROC %

Get a 7-Day Free Trial

10.70

-1.12

4.20

9.76

10.60

Card Factory Semi-Annual Data
	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24
ROC %	Get a 7-Day Free Trial															11.28	6.03	14.18	8.07	13.31

Card Factory ROC % Calculation

Card Factory's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2024 is calculated as:

	ROC % (A: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2023 )	+	Invested Capital (A: Jan. 2024 ))	/ count )
=	76.4 * ( 1 - 24.54% )	/	( (547.9	+	540.3)	/ 2 )
=	57.65144	/	544.1
=	10.60 %

where

	Invested Capital		(A: Jan. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	537.2	-	63.7	-	( 11.7	-	max(0, 150	-	75.6	+	11.7	))
=	547.9

	Invested Capital		(A: Jan. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	552.1	-	60.1	-	( 11.3	-	max(0, 122.1	-	73.8	+	11.3	))
=	540.3

Card Factory's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	96.6 * ( 1 - 25.92% )	/	( (535.3	+	540.3)	/ 2 )
=	71.56128	/	537.8
=	13.31 %

where

	Invested Capital		(Q: Jul. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	577.2	-	78.7	-	( 27.5	-	max(0, 140	-	103.2	+	27.5	))
=	535.3

	Invested Capital		(Q: Jan. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	552.1	-	60.1	-	( 11.3	-	max(0, 122.1	-	73.8	+	11.3	))
=	540.3

Note: The Operating Income data used here is two times the semi-annual (Jan. 2024) data.

Card Factory (LSE:CARD) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Card Factory's WACC % is 18.72%. Card Factory's ROC % is 10.65% (calculated using TTM income statement data). Card Factory earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Card Factory ROC % Related Terms

Thank you for viewing the detailed overview of Card Factory's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Card Factory (LSE:CARD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Card Factory PLC (LSE:CARD) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

CARDl:UK

Address

Century House, Brunel Road, 41 Industrial Estate, Wakefield, West Yorkshire, GBR, WF2 0XG

Website

https://www.cardfactory.co.uk

Card Factory PLC is a British retailer of greeting cards. Its products are offered via stores present in the United Kingdom, as well as online through websites: Card Factory and Getting Personal. The company's strategy is to provide high-quality cards at affordable prices. Less than 50% of sales come from gift dressings, small gifts, and party items. The business model is vertically integrated. It has an in-house design team, a printing facility, and a central warehousing facility.